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April 24, 2020 WiFi module manufacturers started a price war in the smart home ecosystem

From 2013 onwards, take the car smart home networking Express, WiFi module began to take off. By embedding WiFi module, the traditional outlet, microwave ovens, washing machines and other hardware devices can achieve a certain degree of intelligence.

In view of the stock market and a huge low-cost WiFi module, the traditional home appliance manufacturers in the process of transformation of the Internet popular WiFi module.

However, when the price of 1 yuan WiFi module appear, intelligent era far away from us?

Started a price war

Disseminated in the industry for more than a decade, starting in 2013, Shanghai-Branch Information Technology Co., Ltd. CEO and founder Wang Yonghong clearly felt more and more enterprises to talk about cooperation. From the prevailing market price, the average price of traditional WiFi solutions far more than 40 yuan.

But the good, then the market structure will change. January 2015, millet launch of WiFi devices used in home appliances Universal modules, one need only 22 yuan, or even in the conference will be committed to the future price of 10 yuan to the smart appliance manufacturers. Only separated by two months, the company launched 1 yuan 360 intelligent modules WiFi module, the price will be pulled to the bottom.

Low behind the intense market competition. Emerging WiFi module small manufacturers so that the whole market was mixed, from the other side of giants partner turned rival, began to try to do from the module. Gubei Hangzhou Electronic Technology (BroadLink) CEO Zong Lei Jun Ru and turned on each other and therefore the sky, millet research and development during the route, once the two sides cooperate closely, even in the third beta millet routing package contains a BroadLinkRM-home smart remote control, but after the router millet officially released, millet pledged to develop their own smart home WiFi module.

Under Moore’s Law, hardware will always be in the development process faces downward trend in prices, but Wang Yonghong’s view, “the industry maturing process, there is a decline in the cost of certain restrictions, blindly cut prices, even by sacrifice their own interests in exchange markets, a marketing behavior. ”

Although the WiFi module is very small parts, but according to CTO Shen Jianhua, director of Shanghai-made scientific research, product development, production and post-test requires a complex channel program, every program needs to pay the cost, such as a WiFi module listing before certification costs as high as 100,000.

“Some modules cost too much emphasis on the so-called over-simplify the problem of excessive stray chip peripheral circuit design or design occur, the problem is caused when the phone is turned on there is no way a normal call, or the cellular network connection suddenly disconnected, even intelligent occur hardware out of control, resulting in abnormal cardiac pacemaker. “Jiang Qing Chen Shanghai Branch, said research director of hardware, for example.

WiFi module manufacturers started a price war in the smart home ecosystem

Transformation Path

360 Release Smart $ 1  WiFi module significantly lower cost, while behind the play is obviously not hope to make money through the hardware itself. By 1 yuan strategy to attract more home appliance manufacturers rapid access to 360 smart home platform, to build their own smart home ecosystem.

“With low-cost capture more market, particularly large home appliance manufacturers, once the access, in order to ensure interoperability between the whole product line, more conducive to late-stage product applied to home appliance manufacturers across the board.” In the previous interview, Zong Ru had the reporter explained the logic behind the low price, this year in August, BroadLink also announced price DNAKit WiFi module development platform only 9.999 yuan.

Zong Ru also know less than the price of 10 yuan, of course, make money, and the linkage test BroadLink Things DNAKit development platform provided by the cloud service to build large data support and other services can be released late profit, but also to enhance the user stickiness .

WiFi module is a hardware product, prices will certainly fall after volume up, prices have been within the last year, 20 yuan, but beyond costs and create more value, will have space for continued growth.” Shen Jianhua told the newspaper. Under the pressure of competition, the Shanghai-Branch-based WiFi module attempts to transition the software product “Mico” networking operating system, developers can in a variety of micro-control platform, “Mico” system to design and Internet access, to achieve intelligent home products.

“Chip factory only gave me a chip-driven, such as mobile phones installed Andrews, you do not ignore it is inside the chip Qualcomm chip Which is simple to understand Mico system is Windows PC era, the era of Android phones and iOS. “Shen Jianhua explained to reporters.

Shen Jianhua in the opinion, the so-called cloud platform WiFi module company has not yet born, the whole things into connection, internet service in three stages, and now the whole market is still in the first phase, how the various equipment is stable, reliable, safely connect to the internet, “at this stage has not been, platforms, and services behind the stage there is a long journey, if there are so-called platform a few years, we have a question mark.” Shen Jianhua bluntly.

Branch is not a celebration with the same layout, after ARM introduced specifically for the Internet of Things mbedOS networking operating system, hopes Microcontroller Software Interface Standard to further consolidate its dominant position in the networking chips, allowing the major chip manufacturers ARM has become the “fab.” Haier, Midea and other terminal equipment vendors are independent research module aspect gearing up to try.

From a single product, the system platform, WiFi module manufacturers are looking for different development paths. Then the whole industry chain terminal equipment manufacturers from upstream chip factory to the cloud service platform, each have their own thinking, but only bundled with the same interests ecological circle. “Although some small vendors Baotuan create intelligent ecosystem, but each ecosystem are also separate information silos, a unified base of intelligent devices is the underlying system of smart devices outbreak.” Shen Jianhua representation.

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